Agricultural Commodities - Part 1: General Operating Environment

Introduction

Scope

Objectives of global briefing

Key drivers in global commodity trading

Commodity prices driven by supply and demand...

...As does market speculation

Global food commodity prices picking back up

Key findings

Population

Global population growth driven by emerging economies

Population growth underpins demand for commodities

Urban population and packaged food growth in Asia-Pacific

Urban population rise boosts demand for packaged staples

Growth in processed and fresh meat in Latin America

Low yield growth creates structural volatility for commodities

Energy Consumption

Crude oil prices escalate from Q4 2010 and into Q1 2011

Demand for oil recovers but supplies fail to keep up in 2010

Oil demand picks up in 2010

Oil stocks face mounting pressure in Q4 2010

Economic recovery underpins rising demand for oil

Growth in demand for oil expected to slow in 2011

Short-term oil futures factor in political instability

Japanese earthquake exacerbates price volatility for oil

Concerns over oil supplies impacts agricultural commodities

EISA targets set to increase demand for ethanol

Demand for biofuels drives up ethanol prices

Short-term trends and prospects in ethanol trading

China’s insatiable appetite for fresh meat

Currency Valuations

Value of US dollar weakens since mid 2010

Euro-zone crisis impacts value of US dollar in 2010

Economic data presage weakness of US dollar in 2011

Contagion fears could slow growth in commodity prices

Quantitative Easing

Quantitative easing: Implications for global commodities

QE-2 versus QE-1: Effects on short-term trading

Summary

The operating environment for agricultural commodities

Report Definitions

Data parameters

Report terminology and definitions

Packaged food versus fresh food

Product category definitions

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